The Top Global Payment Methods Compared

Provides a comprehensive overview of various payment methods used worldwide, their advantages, limitations, and best-use scenarios. Here's a summary of key sections:

1. The Current State of Supplier Payments

• There are over 26,000 global payment rules for paying international suppliers.
• Optimal payment methods depend on the supplier’s geographical location and payment expectations, impacting satisfaction, security, and operational challenges.

2. Global Payment Methods

• Wire Transfers:
  • Pros: Reliable and fast for immediate, large payments.
  • Cons: Expensive fees ($20–$100 per transfer), limited traceability, and manual processing.
• ACH (US):
  • Pros: Cost-effective, convenient, and ideal for small frequent payments in the U.S.
  • Cons: Cannot be used outside the U.S., and clearing takes at least one day.
• Global ACH:
  • Pros: Inexpensive and ideal for cross-border payments.
  • Cons: Complicated routing rules, manual interface, and unsuitable for countries with limited banking infrastructure.
• Paper Checks:
  • Pros: Familiar process with no direct transaction fees.
  • Cons: High fraud risk, traceability issues, and slow processing times.
• Prepaid Debit Cards:
  • Pros: Strong adoption in regions with limited banking infrastructure.
  • Cons: High annual fees, challenging reconciliation, and uncertain fund management.
• PayPal:
  • Pros: Globally recognized, offers multiple withdrawal options.
  • Cons: High transaction fees and limited acceptance in some countries.

3. Comparing Different Payment Methods

• A detailed table compares costs, speed, convenience, fraud risk, and geographical limitations of the methods.

4. How Tipalti Enables Multiple Payment Methods

• Automates supplier onboarding, payment processing, and error reduction.
• Supports payments to 196 countries in 120 local currencies, offering global coverage.

This document is a helpful resource for businesses navigating the complexities of international supplier payments.